Tax implication for Surrender of ULIP plan after 7 years
This query is : Resolved
19 January 2021
HDFC LIFE ULIP Plan
Premium- 1lakh/year.
Tenure-15 years
Insurance amount- 10 Lakh
Started in Feb 2014.
So, it has been 7 years since I bought this ULIP and now I want to surrender it as the lock-in period of 5 years is over.
I can surrender it and get full fund value as it is more than 5 years. My question is
1) How will this affect my 80C deduction (which I have already claimed) especially for the last 2 years?
2) What is the tax implication for surrender value? Is it fully exempt after lockin period?
Premium- 1lakh/year.
Tenure-15 years
Insurance amount- 10 Lakh
Started in Feb 2014.
So, it has been 7 years since I bought this ULIP and now I want to surrender it as the lock-in period of 5 years is over.
I can surrender it and get full fund value as it is more than 5 years. My question is
1) How will this affect my 80C deduction (which I have already claimed) especially for the last 2 years?
2) What is the tax implication for surrender value? Is it fully exempt after lockin period?
01 December 2021
1. Deduction claimed in last 5 years will be added back.
2. No tax liability if sum assured is Rs.10 lakhs.
2. No tax liability if sum assured is Rs.10 lakhs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Additional trade name
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
